May 18, 2021
Translation Purpose Only
For Immediate Release
REIT Issuer
Starts Proceed Investment Corporation
3-1-8 Nihonbashi, Chuo-ku, Tokyo
Kazuya Hiraide, Executive Director
(Code: 8979)
Asset Management Company
Starts Asset Management Co., Ltd.
Kazuya Hiraide, Representative Director
Inquiries: Hideki Hamaguchi, General Manager of
Financial Control and Administration Division
TEL. +81-3-6202-0856
Notice Concerning Borrowing of Funds
Starts Proceed Investment Corporation ("Starts Proceed") announces that it decided at its Board of Directors' meeting held today to conduct borrowing of funds. The details are as follows.
1. Reason and Purpose of Borrowings
Borrowings will be conducted to allocate funds as repayment of borrowings totaling 4,320 million yen maturing on May 24, 2021.
2. Details of Borrowings
Term Loan 2R | Term Loan 2S | |
Resona Bank, Limited | Resona Bank, Limited | |
Aozora Bank, Ltd. | Aozora Bank, Ltd. | |
Mizuho Bank, Ltd. | Mizuho Bank, Ltd. | |
Lender | The Musashino Bank, Ltd. | The Musashino Bank, Ltd. |
The Chiba Bank, Ltd. | The Chiba Bank, Ltd. | |
The Kagawa Bank, Ltd. | The Kagawa Bank, Ltd. | |
Sumitomo Mitsui Trust Bank, Limited | Sumitomo Mitsui Trust Bank, Limited | |
Loan Amount | 2,159 million yen | 2,161 million yen |
Scheduled | ||
Drawdown | May 24, 2021 | May 24, 2021 |
Date | ||
Principal | ||
Repayment | May 24, 2023 | May 24, 2024 |
Date | ||
Interest Rate | Base interest rate (JBA 1-month Japanese | Base interest rate (JBA 1-month Japanese |
(Note 1) | Yen TIBOR) + 0.420% | Yen TIBOR) + 0.480% |
The first interest payment date shall be the last day of June 2021, and for subsequent | ||
Interest | payments, the last day of every month thereafter (however, in the event that one of these | |
Payment Date | days is not a business day, the business day immediately preceding it) and the principal | |
repayment date. | ||
Loan agreements will be individually concluded for Term Loans 2R and 2S as of May 20, | ||
Borrowing | 2021, based on the basic loan agreement | (hereinafter referred to as the "Basic Loan |
Method | Agreement," including subsequent revisions and addition of lenders (Note 2)) executed on | |
November 19, 2009. | ||
Principle | ||
Repayment | Lump-sum repayment on repayment date | |
Method | ||
Collateral | Unsecured | |
Guarantee | Unguaranteed |
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(Note 1) ・ The base interest rate applicable to the calculation of interest payable on the interest payment day is the JBA 1-month Japanese Yen TIBOR published two business days prior to the interest payment date immediately preceding each interest payment date (drawdown date for the first interest payment date).
- After this, Starts Proceed will not announce the determination of interest rates for the concerned borrowings. For fluctuations in
the Japanese Yen TIBOR of JBA, the base interest rate, please check the website of JBA TIBOR Administration (http://www.jbatibor.or.jp/english/).
(Note 2) For the details of the Basic Loan Agreement, please refer to the press release "Notice Concerning Borrowing of Funds and Repayment of Borrowings" dated November 18, 2009.
3. Borrowings to Be Repaid
Term Loan 2G | |
Resona Bank, Limited | |
Aozora Bank, Ltd. | |
Mizuho Bank, Ltd. | |
Lender | The Musashino Bank, Ltd. |
The Chiba Bank, Ltd. | |
The Kagawa Bank, Ltd. | |
Sumitomo Mitsui Trust Bank, Limited | |
Repayment | 4,320 million yen |
Amount | |
Drawdown | December 9, 2016 |
Date | |
Principal | |
Repayment | May 24, 2021 |
Date | |
Interest Rate | Base interest rate (JBA 1-month Japanese Yen TIBOR) + 0.290% |
4. Status of Interest-Bearing Liabilities After Borrowing (as of May 24, 2021)
(Unit: million yen) | |||||
Before Borrowing | After Borrowing | Change | |||
(Note 1) | (Note 1) | (Note 1) | |||
Short-term loans payable | - | - | - | ||
Current portion of long-term loans | 8,640 | 4,320 | (4,320) | ||
payable | |||||
Long-term loans payable | 35,006 | 39,326 | 4,320 | ||
Total loans | 44,646 | 43,646 | - | ||
Investment corporation bonds | 2,000 | 2,000 | - | ||
Total interest-bearing liabilities | 45,646 | 45,646 | - | ||
LTV ratio (%) (Note 2) | 52.3 | 52.3 | - |
(Note 1) All amounts indicated in the above table and below are rounded down to the nearest million yen.
(Note 2) LTV ratio is calculated as follows, rounded to the first decimal place.
LTV ratio = Interest-bearing liabilities ÷ (Interest-bearing liabilities + Unitholders' capital) × 100 Unitholders' capital is 41,684 million yen as of the date of this document.
5. Other
The risks associated with the repayment of borrowings, etc. have not changed significantly from those detailed in "Investment Risks" in the periodic securities report (yuka shoken hokokusho) for the latest fiscal period submitted on January 27, 2021.
*Starts Proceed website:https://www.sp-inv.co.jp/en/
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